Sellers to help with closing costs?

[Deleted]

As a buyer, how would you look at a house currently on the market that indicates sellers will help on closing costs?

One of the REA we are considering to sell our house recommended this strategy. I'm worried it screams desperate to sell or something negative. REA (who is very familiar with the area and have sold tons of properties in the area/neighborhood) said not all buyers are aware they can ask this so she believes indicating that at the front end is a good thing. I'm assuming it's just not that popular in our area to ask for sellers to help with closing, or the potential buyers for this neighborhood would not think about asking unless their REA tells them to ask.

ETA: REA also mentioned that sometimes buyers are afraid to upset the sellers so they won't ask for help on closing costs. 

[tarheels]

Meh. I don't think you need to advertise it if you dont want to. The buyers who want help with CCs will ask. House hunters either like your house and want to buy it or they don't; I don't think advertising help on CCs will really change a person's opinion of your house.

[minniebee]

I don't think you need to advertise that. If the buyers need help with closing costs, they will ask. With all the home buying shows and such, I think most buyers are aware that they can ask for closing cost assistance, and if they don't already know that, their realtor should tell them.

[Kore]

It's pretty normal here. It would make it more attractive to me.

This probably depends on your price point. I see this a lot on houses under $200k in a low-mid COL area.

[Bonita]

I don't think it's necessary to advertise, however, as a recent buyer I do like the listings that say outright that they're willing to help with closing costs. Then I know kind of what I'm getting in my offer up front somewhat and I don't have to worry if they'll be offended when I ask for closing costs

[kaylie]

I agree that it depends on the price point. The only time I've seen that here is on houses that have been on the market 6+ months or houses in lower priced areas.

Personally, I wouldn't put it in but I'm in a good market for sellers. Can you look up the comparable listings for your house and see if any of them advertise that?

[niknik]

I wouldn't advertise it but I would expect a buyer to ask for it or contribute to it so make sure you account for that in your listing price. I haven't bought or sold a house in years that didn't include at least half the closing costs except for our last house which the loan program I had actually paid for most of them.

[downtoearth]

Yeah, I'm with the others, don't advertise it, just entertain it. If you have a starter home, you will almost be guaranteed to have the offer come in with asking for some or all of the closing costs as part of their deal.

[Deleted]

Thank you all for the feedback. We decided not to advertise it. It was an option our Realtor gave.

But one thing our realtor definitely wants to add is the 100% financing. I guess that's a good thing. I had no idea 100% financing still exist. She said due to the house location, it qualifies for FHA 100% financing.

[downtoearth]

May 8, 2013 8:31:39 GMT -5 d0ri said:

Thank you all for the feedback. We decided not to advertise it. It was an option our Realtor gave.

But one thing our realtor definitely wants to add is the 100% financing. I guess that's a good thing. I had no idea 100% financing still exist. She said due to the house location, it qualifies for FHA 100% financing.

The mortgage industry is not too "reformed" IMO.  We bought at the height and even with 10%+ down available, everyone kept trying to sell us the 80/20 or 100% financing options.  We didn't bite. 

When we bought again in 2012 under a reformed/bailed out mortgage industry and had 20% down available, the agents we talked to all still had 80/20 options that they offered us along with the traditional 20% down mortgages.  Crazy!?!